Koch Brothers Back Debt Fund for Smaller Takeovers

Their Firm Invests $100 Million in New Fund Raised by Ex-Citi Bankers

Billionaires David Koch and Charles Koch are helping launch an investment fund aimed at financing small leveraged buyouts, the latest entrant in the potentially lucrative market.

Koch Industries Inc., the brothers’ closely held conglomerate with $115 billion in annual sales, has contributed $100 million to a new fund raised by Eaglehill Capital Partners LP, according to Koch Industries Chief Financial Officer Steve Feilmeier.